13 Dec 2022

Marlborough winemakers celebrate UK Tesco contract and huge US market growth

6:41 pm on 13 December 2022
300414. Photo supplied. Yealands Family Wines wins ‘Green Company of the Year’ in leading global sustainability awards.

300414. Photo supplied. Yealands Family Wines wins ‘Green Company of the Year’ in leading global sustainability awards. Photo: supplied

The US and UK markets continue to lap up New Zealand wines with our sustainability and geographic advantages sealing lucrative deals.

Marlborough company Yealands has a new contract with the UK supermarket giant Tesco and has also doubled its sales into the US.

Chief executive Tiffani Graydon said a deal with mid-range US supermarket chain Kroger had been fruitful.

Kroger serves more than 11 million customers per day through both its physical stores and website and stocks the Yealands label, The Crossings, grown in the Awatere Valley.

Tiffani Graydon said consumers were influencing global supermarket executives, with environmental strategies winning people over.

The Marlbourough wine is celebrating that their wine will be sold in Tesco stores from next year after a long-sought deal was negotiated.

"We were up against a couple of others. As most retailers do, they run a process annually of reviewing the category and looking at new products that might be available," Tiffani Graydon said.

"It was down to us and two others. One factor was obviously our sustainability ethos and how that comes through in terms of the wine but also the broader company ethos around sustainability.

"The other was our location and what that gives to the wine product.

"We're based at the very southern part of Marlborough in the Awatere Valley. We're right on the coast and that gives us a slightly different flavour profile than other sauvignon blancs on the market."

She said they were starting to reap the rewards from putting a lot of energy into the United States market.

"We doubled our sales into the US last financial year - that was a great start for us."

"What we worked on with our importer in the US was a re-launch of our brand called The Crossings.

"We launched about six months ago and this has been incredibly successful so far.

"Generally in the US it takes a while to secure one of those key listings. Once you've got that and you're building some traction and performing in markets, you tend to get on the radar of other buyers who are looking for something new.

"We'd love to think that it would give us something more down the track in terms of breadth of distribution."

Graydon said the UK was leading the way for vegan wines, while consumers in California were also showing an interest.

"What we see in the UK is separate sets and bays within the wine section that are dedicated to Vegan friendly wines."

"In the US, it's a state-by-stage approach when it comes to the propensity for vegan wines. Obviously states like California are much more into it than say some others."

There is also plenty of growth in low alcohol and lighter style drinks.

"Consumers are just looking for beverages that they feel are more healthy."

Yealands will follow this trend closely by launching a lighter in alcohol range under The Crossings brand in the US next year.

Despite their recent successes there was no further update on the ownership structure of Yealands, Tiffani Graydon said, but a process was underway behind the scenes.

Last August, Marlborough Lines Limited announced they were seeking a strategic partner in order to divest a portion of their holding in the winery.

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